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Great Bear Resources reports more high-grade drill results from LP Fault at Dixie

Last updated: 13:38 11 Mar 2021 EST, First published: 10:01 11 Mar 2021 EST

Great Bear Resources -
Today's results come from ten new holes at the LP fault on 225m of strike and highlights included 29.17 g/t gold over 15.50m from a depth of 41.80 to 57.30m

Great Bear Resources Ltd (CVE:GBR) (OTCMKTS:GTBAF) (FRA:0G6A) has reported more high-grade results from its large LP Fault target at its flagship Dixie gold project in Ontario. 

CEO Chris Taylor told investors he believes the LP Fault represents "one of the largest consistently mineralized new gold discoveries being explored today". 

READ: Great Bear Resources appoints industry veteran Gilbert Lawson to its board of directors

The LP Fault is basically a target with 18 kilometers (km) strike length and has been seismically imaged to extend to 14km depth.

Today's results come from ten new holes at the LP fault on 225 meters (m) of strike and highlights included 29.17 grams per ton (g/t) gold over 15.50m from a depth of 41.80 to 57.30m.

A deeper hole intersected 5.29 g/t gold over 29m from a depth of 397.50 to 426.50m, including high-grade core of 62.13 g/t gold over 1.60m from 405.00 to 406.60m.

Great Bear said  "strong continuity" of gold mineralization continues to be observed on a section-by-section basis, and vertically.

Meanwhile, the company said it was also planning systematic grid drilling of the Dixie Limb and Hinge zones to depths of up to 800m as part of its current maiden resource definition drill program.

In wider regional drilling, Great Bear sunk ten widely spaced reconnaissance holes between 500m and 2km from northwest of the Dixie Limb and Hinge zones and new gold-bearing quartz veins were encountered in nine of them.

In addition, two larger diameter (HQ) drill holes were carried out into the LP Fault to provide material for metallurgical testing.

Metallurgical sample selection and testing of high, medium and low-grade LP Fault samples are ongoing, it added. Results will be reported as they become available.

Great Bear's flagship Dixie project comprises 9,140 hectares of contiguous claims that extend more than 22km. It sits about 25km southeast of the town of Red Lake, Ontario.

Today's results come from its ongoing fully funded C$45 million 2021 exploration program.

Broker Mackie repeats 'Speculative Buy'

"Overall, we believe the results are, on balance, excellent and highlight the potential of the Dixie Project as a world-class deposit which is in line with our investment thesis," said broker Mackie in a note following the announcement.

Analyst Adam Schatzker noted he was not expecting that Great Bear would be deepening the hole DL-064 to crosscut all known zones and discover a new gold zone.

"We are very keen to see the results that the wedge drilling will produce as Great Bear tests the deeper portions of both the Hinge and Limb zones – DL-064 will provide the platform from which that drilling will commence," he said.

"We continue to have confidence that the mineralized inventory at the Dixie Project will be in line with our estimate of 9.6 million ounces," he added.

"If the LP Fault zone is similar to other fault hosted, Archean gold deposits, it is not unreasonable to expect that the mineralization will continue well below the 500 m level – this represents upside that has yet to be tested or included in our valuation."

Mackie repeated a 'Speculative Buy' rating on the stock and a C$36 price target, which is more than double the current price of C$15.25 each.

----Updates to include broker comment----

Contact the author at giles@proactiveinvestors.com

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